Group 7 is our next group of amendments. They relate to changes to permitted payments under the Renting Homes (Fees) Act (Wales) 2019. Amendment 5 is the lead amendment, and I call on Julie James to move and speak to the lead amendment and the other amendments in the group. Julie James.

Amendment 5 (Julie James) moved.

Diolch, Llywydd. Amendment 5 amends Schedule 1 to the Renting Homes (Fees etc) (Wales) Act 2019 and permits payment for a further copy of a written statement of an occupation contract. Broadly, the purpose of the 2019 Act is to prohibit landlords and letting agents requiring payments from contract holders or tenants under a standard occupation contract, unless those payments are permitted under that Act. Those payments that are permitted are set out in Schedule 1 to the 2019 Act. Given that section 31(5) of the 2016 Act states that a landlord may charge a reasonable fee for providing a further written statement, this payment does need to be included in Schedule 1 to the 2019 Act.

Amendment 6 permits the payment of service charges to community landlords and supported accommodation providers in respect of standard occupation contracts, with retrospective effect from the date the 2019 Act came into force. Amendment 7 provides for early commencement of amendment 6 upon Royal Assent, which is considered an appropriate and practical step to reduce the period of retrospection.

As is the case with copies of written statements, the list of permitted payments included at Schedule 1 to the 2019 Act does not currently include service charges—that is, things such as grounds maintenance, the maintenance of common areas of blocks of flats and external window cleaning. The focus of the 2019 Act is on ensuring that contract holders are not subject to additional and/or unreasonable fees charged by letting agencies and private landlords. Most tenancies in the social housing sector will be secure contracts and therefore not subject to its provisions. However, introductory standard contracts, prohibited standard contracts and supported standard contracts issued by community landlords and supported accommodation providers would be subject to its provisions. As a result, service charges in relation to these types of social housing tenancy are prohibited by the 2019 Act. This effect is unintended. Service charges are a necessary element of social housing tenancies, especially in supported accommodation, where the cost of the services necessary to keep vulnerable people safe and suitably housed can be considerable. Amendment 6 rectifies this situation. It adds service charges levied by a community landlord or supported accommodation provider as a permitted payment under Schedule 1 to the 2019 Act, except for situations where a community landlord is undertaking commercial rental activity.

Pending the implementation of the system of occupation contracts to be introduced by the renting homes Act 2016, transitional provision regulations, which came into force in September 2019 at the same time as the 2019 Act, apply certain Parts of the 2019 Act to existing assured shorthold tenancies.  Amendment 6 amends these regulations so that, during the transition period, service charges will be a permitted payment in relation to assured shorthold tenancies in otherwise the same circumstances as they will be made permissible in relation to standard occupation contracts.

The amendments to the transitional regulations retrospectively apply the inclusion of service charges as a permitted payment from the date the 2019 Act came into force, that is, 1 September 2019. The effect of this will be that the service charges levied by applicable landlords will be lawful from that date. Whilst we do not anticipate any adverse impact on tenants of this change, amendment 6 prohibits a landlord that has charged a service charge during that period from issuing a section 21 notice for a period of six months. For similar reasons, two savings provisions are included. The first means that any section 21 notice served before the amendment comes into force remains invalid. The second means that any repayment order made under section 22(1) of the 2019 Act is saved.

Amending the 2019 Act to permit service charges in relation to standard occupation contracts issued in the social housing sector is vital to ensuring that it remains economically viable for providers to make provision for specific groups of vulnerable people. This is especially true in the supported accommodation sector. Ensuring that the change applies retrospectively is critical to ensuring that social housing providers are not caused serious financial harm by having to pay back money previously collected, thus reducing their capacity to make future provision. For these reasons, I urge Members to support amendments 5, 6 and 7.

Minister, I welcome these amendments, and in particular amendment 6. I understand that many in the social housing sector have made representations to you about the issue, and I'm pleased that a way forward has been found. Whilst I understand the action that the Government has taken, I do wonder about how the issue arose in the first place. In your explanatory notes, you acknowledge that the Renting Homes (Fees etc.) (Wales) Act 2019 has resulted in some unintended consequences. This is a theme that has arisen during the passage of the Renting Homes (Amendment) (Wales) Bill. I understand that we cannot foresee all issues that may arise through legislation, but respectfully I question whether ambiguities within the drafting of the Welsh legislation is creating these avoidable issues in the first place. 

As you have outlined, RSLs are thought to have a total financial exposure of £3.5 million. This goes to emphasise how serious this so-called unintended consequence actually is. Most importantly, however, I would like to ask you about your assessment of the impact that this will have on tenants, many of whom are on lower incomes. Will any tenants receive a rebate for any costs incurred, and could you give some information on your discussions with the Department for Work and Pensions about mitigating any possible impacts on the benefits that those affected may be receiving? There will also be concerns as to whether all of the provisions of amendment 6 are within legislative competence. And so I'd be grateful for your clarity on this. Diolch. 

The Minister to respond. 

Diolch, Llywydd. Firstly, I want to stress that these are charges for services that have been delivered and for which tenants have continued to make payments. Social housing providers are unaware of any tenant who has refused to make a payment on the basis that it was unlawful under the 2019 Act. For the most part, the amendment is simply regularising that which has already taken place. Furthermore, it's important to remember that a large proportion of the payments that have been made will have been covered by housing benefit or universal credit. If we did not make these changes retrospective, any repayment of service charges that landlords may consequently be required to make may well result in the suspension of benefit payments whilst a claim is reassessed. At worst, it could lead to demand for benefit payments to be repaid and for individuals to be transferred from housing benefit to potentially less favourable arrangements under universal credit. 

I also want to emphasise that there are a number of safeguards for tenants built into amendment 6. Currently, no-fault section 21 notices are invalid where prohibited payments have been made. The amendment requires that, even after the payments have been made lawful, any invalid section 21 notice previously issued would continue to be invalid. What is more, landlords who have levied a service charge during the period from 1 September 2019 to the coming into force of the amendment will be prohibited from issuing a section 21 notice for a further six months after the legislative change comes into force. This will allow the tenant time to understand the legal position and remedy any service charge arrears that may have occurred as a result of the retrospection. I also think it's worth pointing out that no tenant could be retrospectively charged for services for which no charge was levied during the period when this was prohibited. 

The other point the Member made is very straightforward, Llywydd. We are satisfied that this is within the legislative competence of the Senedd and the Welsh Government. Diolch.

The question is that amendment 5 be agreed. Does any Member object? [Objection.] Yes. We'll move to a vote on amendment 5. Open the vote. Close the vote. In favour 46, two abstentions, one against. Amendment 5 is therefore agreed. 

Amendment 5: For: 46, Against: 1, Abstain: 2

Amendment has been agreed

Amendment 6, Julie James. 

Is it being moved?

Amendment 6 (Julie James) moved.

Moved, Llywydd. 

Thank you. Are there any objections to amendment 6? [Objection.] There are. So, we'll move to a vote on amendment 6. Open the vote. Close the vote. In favour 45, two abstentions, two against. Therefore, amendment 6 is agreed.

Amendment 6: For: 45, Against: 2, Abstain: 2

Amendment has been agreed

Amendment 18, Julie James. 

Amendment 18 (Julie James) moved.

Moved. 

Are there any objections to amendment 18? [Objection.] There are. We'll therefore move to a vote on amendment 18. Open the vote. In favour 45, four abstentions, and none against. Therefore, amendment 18 is agreed.

Amendment 18: For: 45, Against: 0, Abstain: 4

Amendment has been agreed

Laura Jones, amendment 55 in your name. Is it moved?

Amendment 55 (Laura Anne Jones) moved.

Moved.

Thank you. Any objections to amendment 55? [Objection.] There are. Open the vote on amendment 55. Close the vote. In favour nine, four abstentions, 36 against. Therefore, amendment 55 is not agreed.

Amendment 55: For: 9, Against: 36, Abstain: 4

Amendment has been rejected

Amendment 19, Julie James.

Amendment 19 (Julie James) moved.

Moved.

Are there any objections to amendment 19? [Objection.] There are. We'll move to a vote on amendment 19. Open the vote. Close the vote. In favour 45, four abstentions, none against. Therefore, amendment 19 is agreed.

Amendment 19: For: 45, Against: 0, Abstain: 4

Amendment has been agreed

Amendment 20, Julie James.

Amendment 20 (Julie James) moved.

Moved.

Any objections to amendment 20? [Objection.] Yes. We'll move to a vote on amendment 20. Open the vote. Close the vote. In favour 45, three abstentions and one against. Amendment 20 is agreed.

Amendment 20: For: 45, Against: 1, Abstain: 3

Amendment has been agreed

Amendment 56—

—in your name, Laura Jones. Is it being moved?

Amendment 56 (Laura Jones).

Moved.

Thank you. Are there any objections to amendment 56?

Can I see—? Yes, I can see an objection. [Objection.] Yes, thank you. It's objected and I call for a vote on amendment 56.

Open the vote. Close the vote. In favour 13, no abstentions, 36 against. Therefore, amendment 56 is not agreed.

Amendment 56: For: 13, Against: 36, Abstain: 0

Amendment has been rejected

Amendment 21—

—Julie James, is it being moved?

Amendment 21 (Julie James) moved.

Moved.

Are there any objections to amendment 21? [Objection.] Yes. We'll move to a vote on amendment 21. Open the vote. Close the vote. In favour 36, nine abstentions, four against. The amendment is therefore agreed.

Amendment 21: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 22, Julie James.

Amendment 22 (Julie James) moved.

Moved.

Are there any objections to amendment 22? [Objection.] Yes. We'll therefore move to a vote on amendment 22. Open the vote. Close the vote. In favour 45, three abstentions, and one against. Therefore, amendment 22 is agreed.

Amendment 22: For: 45, Against: 1, Abstain: 3

Amendment has been agreed

Amendment 23, Julie James.

Amendment 23 (Julie James) moved.

Moved.

Are there any objections to amendment 23? [Objection.] There are. We will therefore open a vote on amendment 23. Open the vote. Close the vote. In favour 36, 12 abstentions, one against. Therefore, amendment 23 is agreed.

Amendment 23: For: 36, Against: 1, Abstain: 12

Amendment has been agreed

Amendment 24, Julie James.

Amendment 24 (Julie James) moved.

Moved.

Are there any objections to amendment 24? [Objection.] Yes. We'll move to a vote on amendment 24. Open the vote. Close the vote. In favour 36, 12 abstentions and one against. Therefore, amendment 24 is agreed. 

Amendment 24: For: 36, Against: 1, Abstain: 12

Amendment has been agreed

Amendment 25, Julie James.

Amendment 25 (Julie James) moved.

Moved.

Are there any objections to amendment 25? [Objection.] Yes. We'll move to a vote on amendment 25. Open the vote. Close the vote. In favour 36, nine abstentions and four against. Therefore, amendment 25 is agreed. 

Amendment 25: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 26, Julie James. 

Amendment 26 (Julie James) moved.

Moved. 

Are there any objections to amendment 26? [Objection.] Yes, and we'll therefore move to a vote on amendment 26. Open the vote. Close the vote. In favour 36, nine abstentions and four against. Therefore, amendment 26 is agreed. 

Amendment 26: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 27, Julie James. 

Amendment 27 (Julie James) moved.

Moved. 

Are there any objections to amendment 27? [Objection.] There are. We'll move to a vote on amendment 27. Open the vote. Close the vote. In favour 36, nine abstentions and four against. Therefore, amendment 27 is agreed. 

Amendment 27: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 28, Julie James.

Amendment 28 (Julie James) moved.

Moved. 

Are there any objections to amendment 28? [Objection.] Yes. We'll therefore move to a vote on amendment 28. Open the vote. Close the vote. In favour 45, no abstentions and four against. Therefore, amendment 28 is agreed. 

Amendment 28: For: 45, Against: 4, Abstain: 0

Amendment has been agreed

Amendment 29, Julie James.

Amendment 29 (Julie James) moved.

Moved. 

Are there any objections to amendment 29? [Objection.] Yes. We'll move to a vote on amendment 29. Open the vote. Close the vote. In favour 36, nine abstentions and four against. Therefore, amendment 29 is agreed. 

Amendment 29: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 30, Julie James. 

Amendment 30 (Julie James) moved.

Moved. 

Are there any objections to amendment 30? [Objection.] Yes. We'll move to a vote on amendment 30. Open the vote. Close the vote. In favour 36, nine abstentions and four against. Therefore, amendment 30 is agreed. 

Amendment 30: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 31, Julie James. 

Amendment 31 (Julie James) moved.

Moved. 

Are there any objections to amendment 31? [Objection.] Yes. We'll move to a vote on amendment 31. Open the vote. Close the vote. In favour 36, nine abstentions, four against. Therefore, amendment 31 is agreed. 

Amendment 31: For: 36, Against: 4, Abstain: 9

Amendment has been agreed

Amendment 7, Julie James. 

Amendment 7 (Julie James) moved.

Moved.

The question is that amendment 7 be agreed. [Objection.] No, there is an objection. We will move to a vote on amendment 7. Open the vote. Close the vote. In favour 45, three abstentions, one against. Therefore, amendment 7 is agreed. 

Amendment 7: For: 45, Against: 1, Abstain: 3

Amendment has been agreed

Amendment 8 is next. Julie James. 

Amendment 8 (Julie James) moved.

Moved. 

Are there any objections to amendment 8? [Objection.] There are. We will move to a vote on amendment 8. Open the vote. Close the vote. In favour 36, 12 abstentions, one against. And, therefore, amendment 8 is agreed.

Amendment 8: For: 36, Against: 1, Abstain: 12

Amendment has been agreed